If you found yourself in an urgent financial situation you wonder: “How do I get a quick and easy short term loan?” Luckily, there’s no reason to panic.
In this blog, you’ll learn everything about getting a short-term business loan in under 24 hours.
A short-term loan is exactly what you expect it to be: A business loan that you receive and repay in a short period of time. Without a doubt, the word “short” can mean different things to different people.
Don’t get confused, we’ll give you the ideal definition of short-term loans based on our years of experience working with business owners accessing fast short-term business loans.
Most small business loan lenders in Australia, Canada, and the UK, consider any loan that doesn’t exceed one year to repay a short-term loan.
But at Small Business Loan Centre, we believe that flexibility is important and we strive to keep it sensibly short. From our experience, we’ve learned that while financial planning is important sometimes it doesn’t go as expected.
That’s why we believe “short” is relative. But more importantly, we give enough space to our clients so they can manoeuvre their financial needs.
We know that you didn’t get into it by choice but it’s your choice to make things right. And we’re here to support you.
How and when you repay your short-term loan is also flexible. Whether you want weekly, fortnightly, or monthly repayments, we can accommodate your needs.
Once again, every business is different, with different needs and preferences. Therefore, we don’t adopt the standard one-year loan harsh structure. Instead, we structure the loan to each individual clients. So far, this approach served our clients the best.
In other words, we’re good at predicting the unpredictable.
Purpose of Short-Term Business Loans
Short-term business loans represent an integral part of business financing in Australia. It’s because small business owners rely on it for unexpected business expenses.
Furthermore, short-term business loans aren’t exclusive to small businesses. Large organizations use them frequently to cover daily business expenses including payroll expenses.
To illustrate, during the Great Recession of 2008, companies were unable to access short-term loans. Essentially, the business market was paralysed without these all-important loans.
Realistically, short-term business loans are ideal for seasonal businesses. For example, a retail business that needs to upgrade inventory for a special occasion.
The flexible nature of the short term loan allows such a business to build inventory before the big day and repay it after the fact.
Short-term business loans provide a lifeline in the form of working capital to mend a broken budget, increase emergency fund, and meet business goals.
Short-Term Business Loans vs. Intermediate-Term Loan vs. Long-Term Business Loans
A short-term business loan is a member of a much larger family called term loans.
Term loans the most common form of business loans. They are the easiest to control as well since you know what you’re getting into.
How do they work?
You borrow a pre-set amount of money in return for a promise to pay it back with interests, which might be fixed or viable. Furthermore, you pay back the cash over a period of time that you and your lender agreed to.
- Short term loans: Usually, loans with a loan tenure of 3-18 months. Interest rates can be fixed or variable, can be between 0.5% to 2.5%. Doesn’t always require a collateral.
- Intermediate term loans: The duration is between one and three years with interest rates up to 36%. Ideal for funding assets like computer systems, which needs upgrade periodically.
- Long-term loans: They can extend over five years or more. Usually, they’re secured by an asset. Most of the long-term loans fall under the category of home loans, car loans, and loans against property. Unlike intermediate-term loans, they have a low Equated Monthly Instalment (EMI).
Do You Really Need a Short-Term Business Loan?
Warning: A short-term business loan might be a risk if you’re not careful. On the other hand, it can be the kiss of life to your business. It all depends on you, if you’re a mindful borrower, this can be the big break you’ve been praying for. Quick loans are expensive, that’s just how they work.
There are many things to consider:
To keep your sanity, ask yourself if the loan for creating more opportunity rather than repaying a debt? Will repaying the loan affect your cash flow?
In an emergency, leave nothing to chance. If you’re using the short-term loan for an emergency, know exactly how you’ll pay it back. At least, have a plan.
Do you qualify for a short-term business loan?
To get qualified for a short-term business loan you must be an established entrepreneur or business owner who has been in business for at least 6 months. You must have a minimum of $10k/month revenue.
Once you get your loan, you can use it any way you want. We don’t force our clients to use their loans in a specific way.
Get Your Short-Term Business Loan Fast
Getting the right short-term business loan for your business can be a source of envy to your competitors, partners, and even friends.
Nobody else knows the value of short-term business loans like we do.
And we acknowledge the fact that you need the cash, and you need it fast without doing tons of paperwork. When you need to finance your business, you need it yesterday.
Precisely, that’s how we built our model around, so you can obtain a quick business loan efficiently.
Borrowers will attain:
- Fast approval.
- Up to $500,000.
- Same day settlement.
- Zero up-front fees.
- Secure online process.
- Non-committal application.
- Minimum paperwork.
- Complete service from our loan experts.
Now, it’s your turn to get the ball rolling.
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